One Major Difference Between PPOs (Preferred Providers Organizations) and HMOs

question 229

Multiple Choice

One major difference between PPOs (preferred providers organizations) and HMOs (health maintenance organizations) is that

• A) PPOs set rates for various medical services or procedures, while HMOs allow their doctors and clinics to set their own rates.
• B) PPOs seek to reduce health care costs by controlling prices, while HMOs seek to reduce costs by restricting quantity consumed.
• C) HMOs employ their own physicians or contract for specialized services with outside providers, while PPOs have arrangements with a network of providers.
• D) HMOs seek to reduce costs by capping the rates for various services, while PPOs seek to ration health care by having waiting periods.

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